This was copied from the McDonalds site.
“Since the total cost varies from restaurant to restaurant, the minimum amount for a down payment will vary. Generally, we require a minimum of $750,000 of non-borrowed personal resources to consider you for a franchise. Individuals with additional funds may be better prepared for additional or multi-restaurant opportunities.”
OK== let’s do the math.
If you make $7.50 an hour and started saving your money, you would need to work $750,000/$7.5= 100,000 hours to buy your own McDonalds.
When I was a junior in HS [1968] the minimum wage was $1.60 an hour. Do you think a McDonalds franchise in 1968 cost anything close to $160,000 [$1.60 x 100,000 hours = $160,000] My hunch is that a franchise cost closer to $40,000. I could not find that number online.
Cost Of Living 1968 How Much things cost in 1968
Yearly Inflation Rate USA 4.27%
Average Cost of new house $14,950.00
Average Income per year $7,850.00
Average Monthly Rent $130.00
Gas per Gallon 34 cents
Average Cost of a new car $2,822.00
Movie Ticket$1.50
NJ College $175/semester state college $250/semester Rutgers University
The Federal Hourly Minimum Wage is $1.60 an hour
I got mine now you get yours holds true when the cost of living is proportionate.
And don’t get me wrong. I don’t begrudge the guy that owns the McDonalds a single dime. My aunt and uncle owned 2 Dairy Queens. They worked 12 hour days, 7 days a week with all my cousins helping when they were not in school. I’d be quite surprised if that family didn’t work just as hard and take just as many risks.
I don’t know what the solution is but people my age [boomers] were privileged because of the sacrifices of our parent’s generation in addtion to the political and economic decisions made by our elders. I will always be in their debt.
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